GrowGeneration (GRWG 2.18%), a hydroponics retailer determined to bulk up through asset buys, has announced its latest acquisition. The company announced Wednesday that it has purchased Massachusetts-based Aquarius Hydroponics, giving it an anchor in a state with a young but thriving recreational marijuana market.

As has been its habit, GrowGeneration divulged neither the terms nor the price of the deal. It's likely that the cost was not immense, as Aquarius Hydroponics has only a single 14,600-square-foot store, located in the town of Agawam near the city of Springfield in the western part of the state. That store sells both indoor and outdoor growing equipment, and according to GrowGeneration, draws nearly $5 million in annual revenue.

Marijuana plants growing under LED lights.

Image source: Getty Images.

"The Aquarius Hydroponics acquisition is a testament to our continued investment in best-in-class hydroponic suppliers in emerging adult-use markets across the U.S.," said GrowGeneration CEO Darren Lampert. "Importantly, it represents our entry into Massachusetts' cannabis market, which is projected to become a $1 billion industry in 2021."

Although the sale and consumption of recreational marijuana in the state were legalized via a ballot initiative in 2016, its market for such products only opened in late 2018.

GrowGeneration wasn't shy to point out that the Aquarius Hydroponics deal is its seventh acquisition so far this year. It gives the company 52 stores in total, spread across 12 U.S. states.

The torrid acquisition pace should slow down; GrowGeneration has said it intends to end the year with a total of 55 stores in its portfolio.

Investors appeared happy the company was adding the small retailer to its asset list. GrowGeneration closed trading Wednesday up 4.6%, well outpacing the 0.3% rise of the S&P 500 index.